Number 1 (18) 2010.
Keep heading for! Fishery industry determined priorities for 2010
The enlarged session of the Federal Fishery Agency (FAR) Collegial took place in Moscow on March 15, 2010 with the main aim to verify routes and to choose the right course.
The Head of the FAR, Andrey Krainiy opened the session with a detailed report about the results of the fishery industry work and the tasks for the future. Last year the RF fishery complex showed the increase in catch of 11.6% with the total catching output of more than 3.7 million tons. Alongside with that the volume of imported fish was reduced by 13.2% and amounted to 951 thousand MT.
Among the prerequisites of such positive results Andrey Krainiy quoted the realization of legislative innovations in the industry adopted in 2008, while the number of water resources’ species for which the TAC limits were established previously, – in 2009 was reduced by 2/3, so the catching of more than 200 species may be waged now freely.
In the international fishery policy the accent in 2009 was made on further development of cooperation with traditional partners within the framework of bilateral agreements which ensure the possibility of fishing by Russian vessels in the economic zones of foreign states. Of greatest interest for the Russian side still remain the cooperation with Norway, Japan, Morocco, Mauritania, EU, as well as with Ukraine and Estonia. In 2010 with the purpose to further develop international activity the FAR is going to sign the Memorandum of understanding with the Republic of Peru.
As of January 1, 2010 the Government established the sea borders of already 10 sea ports, which include fish terminals, these are Murmansk, Kaliningrad, Novorossiysk, Eisk, Anapa, Zarubino, St.Petersburg, Magadan, Ust-Luga and Posiet.
Alongside with that the analyses of successes permitted to reveal the weak sides as well. A number of tasks, being the priority of the industry, were pointed out by the first Deputy Chairman of the Government, Victor Zubkov: to increase fish products output and to meet the target indices set forth, to raise the deliveries of home produced fish products to the local market.
Also the leaders of the fishery industry this year should work out practical, not theoretical forms and methods to renovate the fishery fleet, as well as to elaborate large scale measures for the development of fishery at inner water reservoirs. The third priority direction must be the development of aquaculture. The fourth and the most important direction, indicated by Andrey Krainiy, should be the development of the coastal infrastructure.
In order to realize the financial tasks set for 2010, first of all the stability of legislation is required. «Thus, the stability of legislative acts is very important and any discussion on changing the Law, on changing quota allocation principles, on obligatory trade with fish through Fish Stock exchange, are destabilizing the industry to a significant extent and are harmful from the point of view of its financial status» – the president of Alaska Pollock Association, German Zverev stated in his speech. The first Deputy Chairman of the Government, Victor Zubkov, agreed with this position.
Coastal fishery development is among priority tasks
The fishery minister of the Kamchatka territory, Vladimir Galitsyn presents his point of view on the results of the Kamchatka fishery industry work last year and the main tasks to achieve.
- The analyses of the Kamchatka fishery complex enterprises within 2009 testify about positive trends of development compared to 2008. In 2009 the share of Kamchatka fishery complex in the total production output of a Federation subject amounted to some 57% (2008 – 52%). The effective work of the Commission for the fishery regulation helped to achieve a historic record in salmon catch: the total use of only commercial quotas allocated amounted to 193 thousand tons (94% of the volumes allocated) either 184% to the previous year.
- As for results of 2009 Kamchatka is on the first place for the catch of marine living resources among all the regions of the Far East Federal District with the share of some 34%. The total volume of fish and sea products production output (canned fish not accounted) in 2009 amounted to 714 thousand tons, i.e. 7% higher than in 2008. The volume of own produced goods delivered and works and services accomplished rose by 24%.
- However, notwithstanding the positive trends not all the problems are solved in the fishery complex of Kamchatka. Many problems still remain in the field of raw materials supply and a high tax press upon the ashore processing enterprises, the problem of stimulating the growth of fish deliveries to the local market.
- The Government of Kamchatka foresees the prospective in the fishery complex development, first of all in connection with the further development of the coastal fishery with the full range of catch, storage, processing and selling the marine living resources with a high share of added value, the development of the ashore infrastructure of the fish secondary processing. As of to-day at Kamchatka there are built and operational more than 170 fish processing factories and shops, one quarter of them work all year round. The summarized daily production capacity of all the factories amounts to 11 thousand MT of frozen products, some 800 thousands conventional cans. The storage capacity to keep the frozen products is equal to some 100 thousand tons.
We have no right to put up with problems
Deputy Head of the Federal Fishery Agency, Vyacheslav Bychkov tells about agreements reached in the end of last year – the beginning of this year between important state structures: the Border-guard service of the Federal Security Service (FSB) of Russia, Department of economic security of the Ministry of Interiors and the Federal Fishery Agency (FAR).
- Documents adopted within the framework of decisions of the operative meeting of the Security Council in September of 2009 indicate two key directions. The first one envisages the cooperation of the FAR territorial departments with corresponding coast-guard units of FSB on issues of control, supervision and preservation of marine living resources, fixed in our joint plan of actions. The second one envisages control actions along the routes of transportation, in places of storage and trade with marine living resources together with the Ministry of Interiors of Russia.
- Right in mid-March this year there adopted one more governmental decision on delimitation of zones of responsibility between FSB and FAR authorities in the sphere of marine living resources’ protection and State control in those areas, where the borders of internal water basins and internal seas of the Russian Federation were not previously determined.
- An important role will also play the bill we prepare now on the Ship Register, aimed as well at counteracting the poaching. Still ardent for us the problem of the so-called “suitably flagged vessels, especially when we are speaking about the Far East basin (though, according to the latest information five such vessels appeared in the Northern basin too). The analysis of data available from the ports of our Asia-Pacific region neighbors shows that the bulk of illegal deliveries of marine living resources is accomplished by those notorious vessels under flags of Cyprus, Panama, Belize, Cambodia…
- If those problems are not solved they push the people to commit illegal actions. We can not and have no right to put up with these problems.
Fishery coastal settlements should have prospective of development
The minister of agriculture food and fishery of the Sakhalin region, Serguey Karepkin is speaking about the Sakhalin fishery industry results for the pervious year.
- Fishery enterprises of the region have caught in 2009 some 655.5 thousand tons of fish and sea products, i.e. 37.9% more than in 2008. Fishery industry ensures the fifth of the total production output of the region and the same share in the region’s export.
- In our region there was established a modern salmon farming industry, the summarized capacity of State and private hatcheries amount to more than 800 million salmon eggs, i.e. quite 80% of the Pacific salmons reproduction in Russia. 36 hatcheries are equipped with the most sophisticated technical means and apply the most modern technologies. Last year our fishermen caught more than 297 thousand tons of salmons, i.e. by 176 thousand tons more than in 2008.
- SakhNIRO produced a rather positive forecast for salmons in 2010: totally in the Far East basin we expect the catch at the level of some 340 thousand tons, a rather good harvest for «non-productive» year.
- My opinion is that the fishery industry potential is in the stable development of the coastal aquaculture. For the purpose there are needed the development of aquaculture technologies, restoration of costal populations of marine living resources and reproductive potential of the region’s salmon rivers, invigorating the control and pouching prophylaxis, creating the conditions for the profitable legal work, development of a new generation of small-sized and small-tonnage catching vessels and processing facilities with the use of innovative technologies. In case of meeting these goals it would permit to increase the production output of fish and sea products by the year 2020 not less than twice as much, to increase the range the products out of marine living resources.
There are no limits for perfection
General Director of the «Morskoye snabjeniye (Marine supply)» company limited, Gennadiy Syumakov tells about new technologies developed by the company.
- The company is the only one in Russia to possess with a shop to produce surfacing of foamed ethyl-vinyl acetate (EVA). We placed this equipment in December 2008. Thus Russia, alongside with Norway, Japan, Canada and Republic of Korea became the fifth country to possess this technology. In 2009 a similar line was established by US producers, however we are the only factory in Russia to produce products with such surfacing: they have excellent floatability, high resistance and are very good looking. They are used for the production of different kinds of nets.
- Before 2009 Far East fishermen engaged in catching salmons were purchasing such products in the Republic of Korea. In December 2009 we installed the modern extrusion line to produce polyethylene threads and now we produce new types of nets.
- Our company stably works more than a dozen of years and we supply our products to quite a half of the Russian Far East: we produce pelagic and bottom trawls, trawl sacks, Danish seines, purse and other types of nets.
- The profitability of our production is about 6-8%. Sure we cannot take credits at 18% interests, but in Primorye the program of co-financing the bank interests is effective and our company is going to participate to.
«Hit before your mother was born»
Eduard Klimov, the Chief Editor of the «Fishnews» magazine is trying to understand: what has been changed since the times, when not only fishermen but state authorities mentioned the real danger of the fishery fleet aging.
- The fact of building three skiffs and two small seiners within the last five years, as well as the inclusion into the Far East United Ship-building center (DVCSS) did not save «DALZAVOD» ship-yard from bankruptcy. Nevertheless, one of the authorities of the DVCSS, Eugeniy Krainov, assured the «Fishnews»: to-day in Russia it is possible to build any fishery vessel, only the technical assignment is required from fishermen. The building equipment and machinery is not a problem, the issue is the cost of the vessel.
- Fishery businessmen not a once discussed the problems of financing the building of new vessels stressing that the credit rate should not be higher than 5% for the purposes of building fishery vessels, as this figure is too far from Russian realities. Even the governmental decision to co-finance the credit rate would not save the situation.
- I’d like to stress the following: the large scale and system help of the State, Andrey Krainiy mentioned about at the session of the FAR Collegial, even if possible – is possible only on the basis of the Federal Program on renovation of the fishery fleet approved by the Government. Alas, this Program still should be developed and adopted.
On renovation of the Far East fishery fleet
Marten Jorgensen, the executive director of the «TECHMAR» (Suppliers of Norwegian Technologies) Group presents his ideas on renovation of the Russian Far East fishery fleet:
- There are three main variants in accomplishing renovation of the Russian Far East fishery fleet: 1. Renovation of existing Russian fishery vessels and their modernization up to the level acceptable for a certain period of time. 2. Purchasing abroad second-hand vessels to substitute with them the existing ones. 3. Building new vessels to replace the old fleet with them.
It’s hard to say which variant is the most preferable. It depends upon the company: its size, fishing quota available, solvency and the strategy of the company for the future. The «Suppliers of Norwegian Technologies» specialists made an analysis of the Far East fishery fleet which showed there are three groups of vessels: typical Soviet era vessels built at home and foreign ship-yards at the State order, like BMRT, SRTMK, SRTM, STS, RS-300, etc. classes; non-typical foreign built vessels, like «Stercoders»; and non-typical second-hand vessels purchased in the post-Soviet era by private companies from Japan, Korea, USA – mainly medium and small-tonnage vessels. More than a half of all these vessels are quite 30 years old and more and there is a strong need to renovate them.
Our Group has been participating within the last 20 years to renovation of more than 100 vessels. We are able to do everything: from small modifications up to building new vessels. There is a possibility to attract Western financial institutions and instruments. In Norway there is a bank consortium with the State participation «Exportfinance» for the purpose.
Ship-owners would soon finish off the remnants of the fleet
Victor Karpov, the general director of the «Russian Virtus Co., Ltd OFFICE In Dalian» representation to the PRC, tells about the PRC successes in the sphere of ship-building.
- According to last year results the PRC is ranked the first in the world as for the volume of ship-building, leaving behind the South Korea, which received $9 billion, while the PRC – just half of this sum. The fact proves the cost of ship-building in China is twice as less. The secret of their success, while failure of ours is the human factor the labor resources.
- Within last decennials Chinese students have been the bulk of the most prestigious international European and American high education institutions. In Chinese institutes a whole army of designers-constructors and engineers-shipbuilders of various specialties is being prepared. Chinese ship-yards are equipped with the modern equipment and machinery.
- The PRC is the country with the most powerful mechanical engineering complex, i.e. the suppliers for ship-yards. Their transportation system is well developed and well controlled. All the above said in total permitted to the PRC to become the leading world power in the sector of ship-building.
- Russia is absolutely unable to follow the leader’ example, as there are too many differences between us. In the nearest years our ship-owners would finish off the remnants of the fleet, sell out the rest and would leave for «warm lands». The program to supply Russians with 80% home made food will remain just the paper.
Our representation in the PRC is ready to exercise all the help to the process of the Russian fleet renovation. Within the period of 2002 till 2008 with our help there were built eight vessels for Russia in the PRC. All of them are working under the Russian flag with register documents of RMRS (small seiner-refrigerator).
Primorye – the main fish transshipping point in the Far East
Acting head of the Federal Service for Veterinary and Phytosanitary Surveillance of the Russian Federation (ROSSERLKHOZNADZOR), the Primorskiy Department, Serguey Dymov tells about the attestation of Primorye fish exporting companies and about measures to protect the local market from poor quality fish products.
- Our Department on December 22, 2009 issued the Order № 538 «About veterinary surveillance over the import, processing, trade with imported water resources, products made of them and export from the territory of Russian Federation of water resources, fish, sea products and products out of them», which affirms the procedure of veterinary-sanitary inspection of vessels and fish-processing facilities, as well as determines the minimal list of documents required for the inspection.
- As of March 12 this year we received 206 applications to undergo this procedure (totally 272 objects), we accomplished 194 inspections. Within this period we rejected applications from 8 subjects due to non-observance of sanitary norms, more 24 subjects were rejected because of non-complete set of documents.
- According to statistics of veterinary documents issued, until now the main fish export streams were heading to South Korea, namely to Busan, now a part of fish is reoriented to China. We speak mainly about Alaska Pollock. However as of late Chinese started to buy salmons too.
- If we are speaking about import, sure, Primorye ports are the main entry points for products, fish included. Mainly fish products are delivered from China, Vietnam other countries of South-East Asia. Fish fillets arrive from China and then are transported to the European part of Russia. This year, because of poor Saury catch, in order to supply canneries it is imported from Japan.
- Cooperation with veterinary services of other countries is maintained constantly. Within the last two years I visited Indonesia, Singapore, Vietnam, USA, several times to China – practically all the countries, which export fish products to the Far East, either import them.
- To our point of view, in order to accomplish control-surveillance functions in the sphere of supplying and providing safe food products there will be required a number of measures, relating first of all to optimization of these functions by different departments. It should be necessary to direct the material and administrative resources to the most sensitive spheres of food products’ turnover, like import-export operations to and from Russian territory the products of obligatory veterinary surveillance, production and inter-regional deliveries of agricultural and fish products. There must be used high technology methods of control and surveillance that would permit to reduce the number of administrative barriers and to raise the effectiveness of control measures.
Questions or answers? Thoughts over exhibitions
Alexander Saveliev, the Chairman of the Public Council by the RF Federal Fishery Agency (FAR) thinks over exhibitions in general and the INTERFISH-2010 specifically.
The question especially ardent for Russian fishery companies is: what for to participate to fishery related exhibitions? To my judgment, within the last twenty years fishery exhibitions in our country have been significantly devaluated and transformed into entertainments. Results of such events near zero.
Last year during the preparation to the INTERFISH-2009, which was held in Moscow on October 19-22, 2009, we started to attentively apprehend the experience of the best and largest world exhibitions of sea food, to study the organization of conferences, seminars, forums.
This year in Moscow, on October 26-29 in the same exposition center CROCUS-Expo again there will be held the International Fishery Exhibition INTERFISH. This year the organizers of the event make the main accent on international relations and issues related to fish processing.
Except for traditional foreign participants to the NTERFISH, this year according to the declaration by the minister of foreign trade of Republic of Peru Eduardo Ferreiros, more than 20 Peruvian fishery companies would come to Moscow. We also expect fishery exhibitors from Cuba, Nicaragua and Venezuela. Taking into account we prepare now to sign an agreement on fishery cooperation with Namibia, we hope to see exhibitors from this country too.
The Head of the FAR, Andrey Krainiy is tired of repeating, that he has no doubts that the INTERFISH-2010 – the chief congress of the fishery industry – would embrace all the smallest aspects having relation to fish and sea food: from the sea up to a plate.
An important component of any exposition’s work is its Internet-portal. The site: www.interfish-expo.ru has been already visited by more than 85 thousand users and the information there is constantly actualized.
Aquaculture. Interrelations of Power and Business: dreams and realities
Victor Pokotilov, the general director of «Nereida» company limited presents his point of view on aquaculture problems and reasons for the lack of positive changes in the sector.
The main water resources of Russia are concentrated in the Southern, Urals, North-Western and the Far East federal districts with the share of up to 90% fishery enterprises of Russia. These are ideal places to grow oysters, mussels, Trout, sea cucumbers and Scallops. Alas, the production of these precious marine living resources runs across an insuperable obstacle, the lack of a Federal Law on aquaculture – it was stated in 2008 by the Head of the Federal Fishery Agency (FAR), Andrey Krainiy. The question is: why the obstacle is the lack of a Federal Law, but not the State Program of the industry development?
- The logical answer is: if the FAR regarded the Program of aquaculture development as a State target and the subjects of this sector possess enough amounts of real money, the Program could become a political slogan and an instrument of career growth.
- The second issue is: the industrial aquaculture is not regarded by scientists as an attractive market of innovations due to the stagnation in the sphere of production. The State does not allocate target funds for the development of industrial technologies except for the cases related to restoration of sturgeon and salmon resources.
- The third issue is: investors evaluating two first factors make a conclusion about high risks, low profitability, non-developed market of technologies, weak legal protection of business, the lack of stimulation by the State.
- Another ardent question to be made to the State bodies: security and protection of private property in aquaculture business. We are alone facing poachers, thieves and swindlers.
- At present there appeared another draft of the Federal Law «About aquaculture», however it suffers principal deficiencies: its provisions have no a direct action, they bear general character and refer to other existing and not existing documents, amendments and corrections.
Thus, even those small in number negative examples prove, that only Program actions are capable to drastically change the situation in aquaculture sector.
Andrey Stankov, manager for development of «COLD (Kholod) Express» group of companies, Anton Sukhorukhih, director for marketing of «Technological equipment» company limited and Vitaliy Khanash, the regional representative of «Alfa Laval» company tell about the situation at the market of cold storage equipment and services.
– At present the market of cold storage equipment is actively developing due to a strong demand by the fishery industry. The demand by the Far East fishery companies can be seen both in reconstruction of existing cold storage facilities and the construction of new ones. The major part of existing cold storages was built even in Soviet era: their infrastructure is not well developed, the cost of keeping products there is too high and the companies confident in the bright tomorrow organize their own cold storages. New buildings for the purpose are rarely built mainly the old buildings are reconstructed and re-equipped.
– With that the cost of «turn-key» construction significantly changed: from 45-50 thousand Rubles per square meter in 2008 down to 30-40 thousand Rubles – this year. Such a substantial economy permits to erect a profitable object. At choosing the cold-storage equipment an intelligent fish producer is interested now not just with the price, but with the correlation «price-quality».
– Regretfully, quite often a situation occurs, when a fishery company rejects highly technological, sophisticated cold storage equipment because of lack of personnel capable to handle it.
– In general there is everything to choose among at the market of the industrial cold, as the companies working there are striving to satisfy all the needs of customers.
Fishery industry insurance – problems or prospective?
Alexander Lizunov, the sales chief of the Vladivostok filial of the insurance joint stock company «Alfa-Strakhovaniye (insurance)», tells about the problems of the fishery complex insurance.
- The central problem which slows down development of insurance in this sphere is the age of vessels. It’s quite obvious, that the possibility of an accident onboard obsolete and warn out 80% vessels is very high, thus the cost of insurance of such vessels would grow several times and become unacceptable by fishery companies.
Another reason is related to specific feature of the fishery industry: who could be able to substantiate the poor catch by heavy weather conditions either by changing the hydrological conditions of the sea? It’s not clear at all.
- Insurance is right one of the most efficient instruments to reduce financial risks. In any case insurance follows the legislation: as soon as legislative acts to regulate this sector appear – insurers would come after. Regretfully, if we have enough experience to insure agricultural risks – the insurance of aquaculture is a brand new and non-developed thing for Russia.
The task of insurers is to try to deliver quite clear and comprehensively to all the participants of the dialogue that the insurance is an optimum financial instrument, which permits to create necessary conditions for the stable development of the fishery industry.
State decorations to sea conquerors
On December 28, 2009 the President of the Russian Federation, Dmitriy Medvedev in the Kremlin Palace presented the captain of the sail training ship «Pallada» of the Far East State technical fishery university, Nikolay K. Zorchenko with the order «For marine merits».
The round the earth voyage of the «Pallada» training ship started on November 2, 2007 and ended on August 11, 2008. Out of the total length of 284 days at sea, 136 days were the storms. During the voyage there occurred 225 rush jobs, 54 exercises and ship trainings accomplished to save the ship in emergency conditions. During the complicated conditions of the voyage the crew of the ship accomplished its main task: to prepare the marine students, as 366 students, cadets and ship’s boys from twelve marine educational institutions of Russia had a unique sea practice onboard the ship.
With the Decree of the RF President there were presented the chief mate Vladimir Ramenskiy, the captain’s assistant for electronics Viktor Krivosheyev, the chief engineer Peter Holdobo, the second engineer Yuriy Pryadko, the electric engineer Serguey Razvodov with different State decorations.
The training sail ship «Pallada» of the Far East State technical fishery university is a participant to the State program «Patriotic education of the Russian Federation citizens in 2006-2010».
«Pallada» in the heart of Singapore
On March 10, 2010 the training sail ship (UPS) «Pallada» of the Far East State technical fishery university (DALRYBVTUZ) moored in the most fashionable part of the port of Singapore, to the berth near the largest trade center «Vivo City». During the stop-over the vessel was visited by quite 2500 people, who made acquaintance with the on-board photo exposition dedicated to the 65th anniversary of the Victory in the Great Patriotic War.
In honor of the photo exposition opening onboard the ship there was organized a formal dinner during which the RF Ambassador Plenipotentiary to the Republic of Singapore, Andrey Rozhkov, congratulated all the countries participating to the Great Patriotic War with the Victory. The same day in the evening there was organized a party by the «Russian Club» for the members of the Russian expatriate community in Singapore, with more than 100 guests.
Next day the ship was visited by military representatives of the diplomatic corps: of Russia, Singapore, India, Malaysia, Philippines, Vietnam, Brunei, New Zealand, Thailand and Indonesia. To all the guests there were presented disks with the film about the Great Patriotic War in English.
The visit of the UPS «Pallada» ended with sport competitions. DALRYBVTUZ students visited the Singapore Marine Academy and played a friendly soccer match. «Pallada» students won 3:1.
Painting surprises of the Fishery College
In one of the upper floor rooms of the Vladivostok marine fishery college there is a room filled with paintings – this is a restoration studio for art works collected by the College. Marina Scherbakova is the keeper and the restorer of marine landscapes, pictures of fishermen work and rest, battle-painting. After restoration pictures will decorate the walls of corridors and classes of the College.
The main part of the collection was formed in the end of 1970-s, when many famous Primorye painters, like Shebeko, Rybachuk, Kholin and many others donated their art-works to the College. «The tradition was started by the first chief of the College, Anatoliy Tikunov», – the present day chief of the College, Euegeniy Dubovik tells. But the time and keeping conditions deteriorated many art-works and a year ago Mr. Dubovik took personal care of them.
The profession of a fisherman has lost its romanticism as of late – the main goal of those sailing to sea is to earn money for an apartment, a new car, a fur coat for the wife. And the education program became too practical. Thus the art related to the future profession would provide the future seamen, electricians and motorists with fresh feelings and romanticism.